Compass Mining, a US-based company, plans to sell approximately $30 million worth of Bitcoin mining equipment in Siberia.
After the United States government placed new sanctions on BitRiver’s mining operation and its ten subsidiaries, the US government ordered the liquidation of the Bitcoin mining equipment.
Vertifying US Sanctions
Compass Mining, according to a Bloomberg report, is seeking Russian buyers for 12 megawatt mining servers. After recovering the equipment’s value, Whit Gibbs, the chief executive officer of Compass Mining, believes that the company will be able pay proceeds to almost 2,000 clients.
Compass will sell 15% of its Russian servers. Gibbs anticipates that Compass’s operational capacity will grow to 355 MW this year from 70 MW after it clears out Siberia equipment.
The company also owns another round of 10MW servers, which it plans to ship to Russia in the next few months. The exec stated that they will be “rerouted” to North American facilities, particularly Texas.
Texas-based company noticed significant activity following the Chinese Bitcoin mining exodus. Many miners fled China due to Russia’s low electricity rates. The cost of electricity in Russia, Siberia and the Norilsk region can drop to $0.03 per kWh. After the invasion of Ukraine, things changed and the crypto mining ecosystem is now under intense scrutiny by Western regulators.
All eyes on Russia’s Crypto Mining Ecosystem
Miners are continuing to search for more friendly hubs and cheaper energy as the latest sanctions were imposed. Compass Mining is concerned about BitRiver’s fate.
This decision by the firm comes after the United States Treasury Department sanctioned a Swiss data-center service provider. CryptoPotato reported that the OFAC stated Russia had a “comparative edge in crypto mining” citing Russia’s energy resources as well as its cold climate.
BitRiver’s founder and chief executive, Igor Runets claimed that BitRiver has never provided services to Russian government agencies and has not worked on customers who have been sanctioned.
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